The Naked Agent Spain

Many of us who are living in Spain like to escape once in a while and venture to other parts of the world, be it scuba-driving trip to the Red Sea or long-haul tour of Asia.  However, one thing is for sure, we should all make sure we are protected when we travel, especially in the recent wake of the companies such as XL Leisure and K&S going bust.
Anyway, I found out to my misfortune that without travel insurance, things that could go wrong sometimes do go wrong, and by the time you try to back track and cover yourself it is too late.

Therefore, my advice to those of you who plan on traveling soon is to take out your travel insurance a few days in advance of your holiday.  You might prefer to take out a policy which covers you to take a few trips during the year.  Anyway, you can get your travel insurance here online in a simple format (This company treated me well, and you can either apply online directly or speak to the staff who will tell you what is best for you). Read the fine print, and see what suits you and your family.  Don't necessarily opt for the most expensive, but opt for the one that suits your needs.  I personally have taken out the annual multi-trip policy, as that suits my family and I best.  And for those of you who like the outdoor sports, such as scuba diving, skiing or snowboarding, some of the new standard policies will cover you for 

Two years ago, before taking out my policy, I ended up having to pay loads when my bags were lost (Madrid airport??!!), and a hotel had cancelled my reservation, (but that's another story). 

Hasta Pronto

For those of you looking to sell or buy a 2nd hand car on the Costa del Sol, the vehicle transfer process can be painful and pretty time consuming if you choose to do it all yourself, especially if you have to go the Jefatura de Trafico in Malaga.

However, there are various 'gestors' / admin companies which take the pain out of this job.  Once such company Getsoria Regina Lopez Castlla in Malaga ( http://www.reginalopez.com).  Call them to find out how much it will cost to transfer your car.  The basic costs involved are as follows: 4% car transfer tax (on the governments book value of the car), transfer documentation payment (about 45 Euros), and then the admin fee which the gestor will charge.  When you call them ensure you have the FICHA TECNICA (log book / car details), as they will ask you for the date the car was registered, the engine size, horsepower and the exact model.  Based on these variables, they will be able to tell you how much it will cost to transfer your vehicle. 

You will have to submit a transfer form (signed by seller and the buyer) together with the following documents:

• Original FICHA TECNICA
• Original PERMISO DE CIRCULACION
• COPY OF YOUR LATEST MUNICIPAL CAR TAX RECEIPT
• SELLERS PASSPORT & NIE NUMBER / GREEN RESIDENCY CERTIFICATE OR SPANISH ID CARD
• BUYERS PASSPORT & NIE NUMBER / GREEN RESIDENCY CERTIFICATE OR SPANISH ID CARD
• BUYERS PROOF OF ADDRESS (ie copy of empadronamiento is porbably best)
• Funds for the vehcile transfer ( They prefer you to do a bank transfer for security, but they will accept cash)

You can pick up one the transfer forms from a professional car dealership who deals with this gestoria. (Just ask them to tell you which dealership is closest to you).  Sign the form and hand in the correct documents & payment back to local dealership.  The dealership normally will send the documents on to the gestoria and  a couple of days later you will get a temporary driving permit, which will enable you or the new buyer to drive the vehicle while the official transfer is completed. This can take from 2 weeks to 2 months.
That's pretty much it in theory!

Adios por ahora

Don't buy a property or get a mortgage in Spain without reading this first.

Many of us enjoy a good night out in Spain, but before we know it we have had one too many and face the prospect of having a hangover the following day.  This is especially bad news when we know we have to get up early the following morning to go to a meeting, or view a few properties with a real estate agent.

But there is cure - BANANAS:
Bananas can help cure or prevent hangovers. The main causes of hangovers are dehydration and depletion of potassium, both direct results of alcohol consumption.  Bananas are an excellent source of potassium (second only to the avocado), and as well as being high in magnesium, they can help relax those pounding blood vessels causing that nasty hangover headache.  Bananas also contain tryptophan, (which can help you sleep), as well as high amounts of vitamin C.

So, if you're out partying in Spain and want to avoid a hangover, drink sixteen good sips of water and eat a banana before heading for bed for a good night's sleep.

This way you can enjoy your night out and still 'enjoy' your work the following day.


Your Guide to Buying a Property and Getting a Mortgage in Spain

Taylor Wimpey, the UK property company, will pullout of Gibraltar next year, bringing to an end a business relationship with the Rock going back four and half decades

The British company unveiled the exit plan as it reported a pre-tax loss of £1.54 billion for the first half of the year after slashing the value of its land assets.  Even before the  poor results were announced in August, the company said it would reduce costs by closing a third of its British offices by the end of September, shedding 900 jobs and cancelling the half-year dividend payment.  But it ts its plans to leave Gibraltar that will most resonate in Gib and the South Coast of Spain.
The move was outlined in a one-line sentence in a presentation to financial analysts.
“We have plans in place to exit our business in Gibraltar, which we expect to be complete during 2009,” the results statement said.
A UK spokesman for Taylor Wimpey said the company was not in a position to add any further comments.
“We’re not giving anything more specific on this at this stage,” he said.
However, it has been suggested that Taylor Wimpey has held discussions with another construction group with a view to a possible sale of its Gibraltar assets.

No one in Taylor Woodrow’s senior management in Gibraltar has been available for comment when the news was announced. Workers at the company appeared to be no clearer as to what implications this would really have.

Taylor Woodrow first came to Gibraltar to work on projects for the Ministry of Defence over 45 years ago. The company later became involved in commercial projects and residential sales, and was the developer behind many of Gibraltar’s emblematic buildings including Queensway Quay and The Cornwalls Centre. It is currently working on two major housing projects, the Tradewinds development in Marina Bay and Filomena House.

Taylor Wimpey’s results in August come against the broader background of the credit crunch and turmoil in key housing markets.  “The first half of 2008 has been characterised by the very challenging trading conditions in the UK, US and Spain,” said Norman Askew, the company’s chairman.  As a result, the company was forced to write off £690 million from the value of its land portfolio to reflect the lower price it is likely to receive for home sales in the current economic climate.  Some £586 million of the overall write-down relates to UK land banks, with £70.8 million relating to US assets and £33.3 million to land in Spain, where Taylor Wimpey sold just 83 properties between January and June, down more than 25%. The company also wrote down a further £816 million of intangible assets and goodwill recognised from the merger between Taylor Woodrow and George Wimpey last year.

Taylor Wimpey’s total house sales were down nearly 31% to 8,494 during the first half of 2008, with average prices for the UK private home sales dropping 10% during that period compared to a year ago. In the US, where Taylor Wimpey does around one sixth of its business, average house prices slumped 28%.

The group now faces breaching its banking covenants - which measure how well placed the firm is to repay the debt - because of its poor results, which will have a major impact on its operations worldwide.

On Friday the Spanish police announced the arrest of one of the most sought-after drug traffickers in the world, Edgar Guillermo Vallejo Guarin, also known as "Beto the Gypsy."

In conjunction with the US DEA and the Spanish Civil Guard, Vallejo Guarin was arrested outside a luxury hotel in central Madrid

According to sources Vallejo Guarin has a long history of violence, involvement in money laundering of drug funds and corruption of high-level government officials. He was on the 'most-wanted' list in various countries, and the United States, had offered a $5 million reward to anyone who helped bring about his capture.

In June 2001, he was accused in Florida of being a principal source of cocaine smuggled from Colombia into the United States throughout the 1990s.

"He is responsible for the shipment of a multitude of tons of cocaine via ship to the United States (especially the west coast of Florida and Miami) and Europe," a press-release said. In addition, he is suspected of being linked to various assassinations, it said.

On being arrested in Madrid sources say Vallejo Guarin was carrying false identification documentation that identified him as Jairo Gomez.

Vallejo Guarin's main residence was in a Barcelona suburb, but he had been staying in hotels across Europe and Venezuela in an apparent attempt to avoid arrest, the release said.

All in all, any efforts made to stamp out corruption and drug-dealing will only enhance Spain's economy, and hopefully put in on steady ground for the long term.  The idea is to avoid the corruption problems and scandals caused over the last two years, which have really hit investors confidence in the property market. 

Story of the HSBC Tower and a Spanish developer

Many of you know or have seen the large HSBC Tower HQ  in Canary Wharf, London.  Well, what many of you might not know is that the building was bought last year by one of the large Spanish Property giants - Metrovacesa.  The price they paid then was about 1.1bn (Pounds Sterling).  Obviously, at the time it was heralded as a fantastic opportunity with the Spanish company buying one of London's landmark buildings.  Analysts alike all seemed to agree that while it was a high price to pay, it was still a deal worth doing!   Large companies were buying landmark buildings left-right and centre!

Well, recent reports from analysts seem to retract those statements.  The deal was a purchase and leaseback to HSBC and only gave Metrovacesa an annual return of between 3.5% to 4%!!  Not brilliant if you ask me (especially when spending that kind of money)! What;s more is that HSBC loaned them a large part of the funds (800m ish) to purchase the property!   So well done HSBC!

Metrovacesa now is not having the best of times and is trying to restructure some of its finances to make the payments.  The building they bought for 1.1bn Pounds last year, could possibly worth 20% less today (according to some analysts), so given the tough market in Spain (and the UK), they may need a helping hand.   

All in all, it just goes to show, that whether you're large developer with billions to spend, or an individual buyer with 100000 Euros to spend, always do your homework, and prepare for the worst case scenario (even if those around you are painting a rosy picture). Also, with each real estate investment you make determine whether you are in it for the long haul or short term, and ensure you can meet your mortgage/loan repayments. Only then can you satisfy yourself that is a worthwhile / comfortable investment.